company: employees: chairman: ceo case study.pdf · company: wegmans food markets inc....
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Company: Headquarters: Total Number of EmploTotal Number of RocheEmployees: Net Sales and RevenuesChairman: CEO: Rochester-based activiti
Rochester-based Wegmanservice by first meeting ththat in 2005 the grocery-sof the “100 Best Compan
It was the eighth year thecompany has been includmagazine’s ranking, and iranked as No. 1. This yearanked No. 2 on the maga
One of the largest privatethe United States, Wegmasales of $3.6 billion from New York, Pennsylvania,and Virginia.
In 2005, sales were estimbillion from 69 stores, incstore in Maryland and a sVirginia.
Growth is decidedly and pemployee. Wegmans openstores. Plans for 2006 callPennsylvania.
Its sales per square foot waddition, the eight percen19 percent industry avera
Wegmans began in 1915 John Wegman (chairman
Case study prepared by Greater RochFor additional case studies, please vis
Wegmans Food Markets Inc. Rochester, New York
yees: 35,000 (approximate) ster-based
14,500 (approximate) , 2005: $3.8 billion
Robert Wegman Danny Wegman
es and developments:
s Food Markets’ philosophy is one of achieving incredible customer e needs of its employees. With an approach like that, it’s no surprise tore chain was ranked No. 1 on FORTUNE magazine’s annual ranking ies to Work For.”
family-owned ed in the ts first year r, Wegmans zine’s list.
companies in ns had 2004 67 stores in New Jersey
ated to be $3.8 luding a new econd in
urposefully slows just two or thre for three new sto
ere an estimated t turnover rate forge.
as a mom-and-poRobert Wegman's
ester Enterprise. it www.RochesterBiz.com
In 2004, sales at Wegmans totaled $3.6 billion from 67 stores in four mid-Atlantic states.
in order to allow adequate time for training each new e new stores each year, and one or two replacement res: two more in New Jersey and one more in
50 percent higher than the national average. In full-time employees is well below the average rate of
p grocery store in Rochester. Brothers Walter and father and uncle) helped out in the family business.
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In 1916, John opened the Rochester Fruit & Vegetable Co., and Walter joined him a year later. By 1921, the two brothers bought the Seel Grocery Co., and expanded their operations to include general groceries and bakery operations.
While a long history of accomplishment and tradition propels the company into the 21st century, it’s the shopping experience that keeps customers coming back and motivates thousands of others to ask Wegmans to open a store in their cities and towns.
The company has proved adept at battling the intractable problem facing grocery stores in this country—that there's no compelling reason to shop there anymore. A tour of a typical Wegmans store feels like strolling an open-air market, with large displays of fresh produce; artisan breads and other baked goods; displays of fresh seafood, meat, deli products and imported cheeses; international foods – plus all the usual foods and household items usually found in supermarkets.
Wegmans also offers “stores within a store.” Many Wegmans stores have Market Cafés, with take-out or in-store dining and seating for 100 to upwards of 200; Pâtisserie - an authentic French pastry shop created by a top Parisian pastry chef; Nature's Marketplace, with natural foods, supplements, herbal remedies, and foods for special dietary needs; and Complements, an upscale cookware, tableware, and accessories department.
Shoppers at Wegmans have more choices than at other supermarket chains, with more than 70,000 products, compared to an averageMarketing Institute. Wegmans stores are also130,000 square feet in size.
Wegmans has won numerous awards and accFORTUNE magazine honor, the store was alsin America” by Child magazine in 2003.
The store ranked 31st on the 2004 Supermarksales volume, ranking 7th among privately he50 in Forbes magazine’s list of the largest pri
One hallmark of the store’s success has been of the first supermarkets to introduce laser baelectronic discount program as an alternative
Case study prepared by Greater Rochester Enterprise. For additional case studies, please visit www.RochesterBiz.com
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Wegmans offers “stores within a store,” including the Market Café
f just over 40,000, according to the Food rger than most, measuring from 80,000 to
des over the years. In addition to the 2005 named the “Most Family-Friendly Supermarket
News list of the Top 75 Supermarkets based on U.S. supermarkets. It also ranks among the top te companies in the country.
early adoption of technology. Wegmans was one ode scanning in 1974, and a "Shoppers Club"
coupon-clipping in the 1990s.
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In addition, the store’s Web site helps customers save time and money by allowing shoppers to browse weekly specials, search through a library of recipes, or look up nutritional information for prepared foods.
Industry analyst Neil Stern, quoted in a 1994 front-page story about Wegmans in the Wall Street Journal, said, “We consider them the best chain in the country, maybe in the world.”
Why Rochester
Wegmans is committed to the Rochester area, its home for 90 years. A recent and highly notable example of this commitment is the recently-announced December 2005 donation of $8 million by Robert Wegman to St. John Fisher College in Rochester to fund the Wegmans School of Nursing. This donation is in addition to a $5 million donation, given by Wegman to the college earlier in 2005, to open the Wegmans School of Pharmacy. The supermarket also is the name sponsor of the annual Ladies Professional Golf Association tournament at Locust Hill Country Club in Rochester.
Rumors abound that other chains would be interested in acquiring Wegmans, but Wegmans doesn't see a need to make such a deal. The company has the capital it needs to expand, and it has established a leadership succession plan by naming Colleen Wegman, daughter of CEO Danny Wegman, president, and daughter Nicole Wegman, director of restaurant operations.
Rochester also is home to a highly innovated and talented workforce and as such, will continue to remain the headquarters for the privately held, family-owned Wegmans.
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Case study prepared by Greater Rochester Enterprise. For additional case studies, please visit www.RochesterBiz.com 3